Selling an flat is frequently 1 of the biggest financial transactions in life. Unfortunately, the joy of profit can rapidly be clouded by the possible of paying a advanced 19 percent income tax. In 2025, regulations are inactive inexorable for those who decide to sale the property within 5 years of its acquisition. However, many Poles do not realise that the Polish taxation strategy provides for a full legal and effective mechanics allowing full avoidance of this tax. The talk of housing relief, which is simply a powerful tool in the hands of a conscious taxpayer. However, the key to success is to know the precise principles, deadlines and conditions to be met. The ignorance or mistake in accounting may cost tens of thousands of zlotys. In this article, as an expert in finance and real estate, I will step by step explain how to take advantage of housing relief and keep all the profits from selling in my pocket.
Property sales taxation in 2025 – who does it concern?
Before we decision on to ways to avoid tax, we request to realize who it concerns. The regulation is that the sale of real property (houses, houses, plots) before expiry five taxation years since the end of the calendar year in which it was acquired, gives emergence to the work to pay 19% of the income tax. The taxation is calculated not on the full amount of sales, but on the income, i.e. the difference between income (the sales price) and the cost of obtaining it (the acquisition price, notarial fees, documented repair costs).
The phrase "five taxation years" is crucial. This means that we number the full calendar years after the year of acquisition. Example: If you bought an flat in March 2020, the five-year period has been valid since the end of 2020. It will expire on 31 December 2025. This means that to sale this property without tax, you will gotta wait until January 1, 2026. Sales will proceed to be subject to taxation at any time in 2025.
Housing Relief: Your Saving Key
But what if you gotta or want to sale the flat early? This is where he comes to help. housing relief, regulated by the individual Income taxation Act. It allows the taxation exemption of all or part of the proceeds from the sale, on 1 fundamental condition: the funds obtained must be utilized for your own housing purposes.
You have plenty of time for that – precisely three yearsFrom the end of the taxation year you sold the property. So if you sale your flat in 2025, you have until the end of 2028 to spend your money. What's crucial is you don't gotta inform the IRS about your plans in advance. It is adequate that in the yearly taxation return PIT-39, submitted by 30 April of the following year, you will declare the amount of income you intend to devote to housing. That's adequate to postpone and yet avoid the tax.
What can money be spent on? Residential intent directory
The Act precisely defines what is considered to be a ‘own residential purpose’. This is simply a closed directory that you should stick to strictly to make relief effective. In 2025, we include:
- The acquisition of a fresh residential building, housing (a flat) or land for building a house.
- Acquisition of a cooperative property right to a housing facility.
- Construction, expansion, superstructure, reconstruction or adaptation of your own building or residential premises.
- Repair of your own building or dwelling – Note: You must already own the renovated property. You can't buy an flat and refurbish it within the same relief pool.
- The repayment of the mortgage debt (including interest) which was contracted to acquisition a sold property or to a fresh residential purpose, even before the date of obtaining income from the sale.
It is worth noting that all expenditure must be documented by VAT invoices or another proof of payment. store them carefully, due to the fact that the taxation office has the right to check your settlement for up to 5 years.
Key terms and formalities. How can I not make a mistake?
To benefit effectively from the relief, you request to remember a fewer steps and deadlines. It's a trap many sellers fall into.
Step 1: PIT-39 folding. By 30 April of the year following the year of sale of the property, you must submit a PIT-39 declaration to the taxation office. It shows income, costs, income and the amount of income you intend to spend on housing (and thus taxation exempt).
Step 2: Spending resources. You have 3 full years from the end of the sales year to spend the declared amount on targets from the statutory catalogue. Remember to paper any expenditure.
Step 3: What if it doesn't work? If you don't spend the full amount declared in 3 years, don't panic. You gotta make a correction of the PIT-39 declaration and pay a taxation on the part of the income you failed to allocate to housing. Unfortunately, you will gotta add interest on late payment to the amount of taxation from the date on which the taxation payment was originally due.
What about donation and inheritance? Here the rules are different
Special rules apply to properties acquired by inheritance or donation. In these cases, the five-year period after which the property can be sold without taxation matters differently. According to a favourable explanation of the rules, this period is calculated from the date of acquisition of the property by the debenture or donorNot since we received it.
Example: If in 2025 you inherit an flat from your grandma who bought it in 2010, you can sale it right distant without tax. The five-year period is long gone. This is key information that avoids unnecessary waiting and usage of housing relief.
In conclusion, the sale of an flat within 5 years does not necessarily imply a painful financial loss. Housing relief is simply a full legal and effective tool that allows you to keep all your profit. However, it requires informed planning, cognition of regulations and careful documentation of expenditure. With this knowledge, you can make informed decisions and optimize your finances by saving tens of thousands of PLN.
Continued here:
Are you selling your flat within 5 years? There's a legal way to avoid tax!
